What are CAM Charges in Commercial Real Estate?

Posted on January 29, 2020

CAM is an often-used acronym for common area maintenance, or the fee that commercial real estate tenants pay above their monthly rent payment to cover their pro rate share of the property owner’s operating expenses. These costs, typically associated with triple-net-leases can include property taxes and insurance; building security, cleaning, pest control and trash removal services; landscaping; common area utilities as well as property management and landlord administration fees. Generally, capital expenses to repair or improve a property are excluded from CAM. However, landlords may make an argument that those costs are a part of a property’s CAM, which benefit tenants and for which those tenants should be responsible for some of the costs.

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